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Volume 5 - Number 07 | February 12, 2007

EDITOR'S NOTES
What constitutes a pass through claim? A subcontractor on a hospital project filed a breach of contract claim against the contractor for failing to provide timely responses to project-related questions. But, the contractor countered that it was awaiting a response from the owner. Despite the subcontractor’s insistence that its claim was not a pass through claim, a district court ruled otherwise and ordered the subcontractor to mediate the dispute with the owner, with whom it did not have a direct contract. Unlike last week’s case in which a California appeals court ruled that court-mandated mediation was not legal, it is in this case because the prime contract required it.

This week’s other two cases tackle a waiver of subrogation clause in a standard contract and the problems of conflicting specifications on a government project.

This issue concludes with an informative look at the problems associated with a complex, as-planned schedule that endured constant modifications and countless delays. Two experts from Warner Consulting take a hindsight look at where the schedule went wrong and what could be done in the future to avoid similar problems in this two-part series.


SUB’S CLAIM AGAINST CONTRACTOR WAS SUBJECT TO RESOLUTION WITH PROJECT OWNER
Even though a subcontractor insists its suit is not a pass through claim to the project owner, a district court rules otherwise, and instructs the subcontractor to participate in contract-mandated mediation with the owner.

WAIVER DID NOT APPLY TO DAMAGED PROPERTY OUTSIDE THE SCOPE OF WORK
A waiver of subrogation clause in a standard AIA contract does not protect a subcontractor against damage it causes outside the scope of the contract. If property not associated with the work is damaged, the subcontractor bears the associated costs.

GOVERNMENT’S DESIGN STANDARD CONFLICTED WITH SPECIFIED TESTING PROCEDURE
A design standard and a performance requirement clash on a government project, prompting a question of whether the government’s specifications were defective.

THE PROBLEM OF SCHEDULING AN EVER-CHANGING PROJECT PART 1—PROJECT DESCRIPTION AND INITIAL SCHEDULE ANALYSES
By Mark I. Anderson and John Livengood
What happens when an as-planned schedule is created with built-in changes that require constant modifications during the project’s 15-year duration? For two Warner experts who worked on opposite sides of the project, the ensuing issues provided a comprehensive “exercise” in schedule analysis, which they share in this two-part series.